SCA Fringe Benefits for
Government Contractors

Providing comprehensive Health & Welfare Fringe Benefit Solutions that make “Great Employee Sense!”

Our Services

sca fringe benefits for government contractors

SCA Fringe
Benefit Options

sca fringe benefits for government contractors

Health
Insurance

sca fringe benefits for government contractors

Fiduciary Requirements

sca fringe benefits for government contractors

Bona-Fide
Fringe Benefits

sca fringe benefits for government contractors

SCA
Administration

sca fringe benefits for government contractors

Compliance

SCA Fringe Benefit Options

  • Hourly Health and Welfare benefit plans designed at the appropriate fringe rate
  • Major Medical insurance
  • Fixed Indemnity Benefits
  • Minimal Essential Coverage (MEC) plans
  • Short and Long Term Disability
  • Dental and Vision
  • Life Insurance
  • Health Reimbursement Accounts (HRA)
  • Retirement
  • Telemedicine
  • Employee Assistance Programs (EAP)
sca fringe benefits for government contractors
sca fringe benefits for government contractors

Health Insurance

Bona-Fide Fringe Benefits are defined within the Code of Federal Regulations. (CFR) Depending upon size, most contractors provide some type of medical insurance and ancillary benefits to fulfill their SCA requirements. This methodology provides employees and their families with healthcare allowing for employees to focus on their work and not worry about the “what ifs” of life.

As the cost of healthcare outruns the yearly fringe rate increase, we specialize in benefit plan designs that are created using specific employer data that allows the benefits to be sustainable over time and not cost more than the hourly health and welfare fringe rate.

Fiduciary
Requirements

Yes, as a government contractor you are a fiduciary to your Health and Welfare Plan and Trust. You are responsible for making informed prudent decisions regarding the structure and cost of your benefit plan(s). An unbundle approach is most cost effective but requires more attention from the employer. Bundled service provides are extremely costly resulting in less benefits for your employees.

Employers should know what the cost factors of their benefit plans are and understand if they are reasonable based upon the services provided. Contractors should be able to prove that they have compared service provider services and costs to validate that they have the most reasonable benefits possible. BH Benefits partners with contractors and completes all these tasks to ensure compliance and that your fiduciary responsibilities are adhered to.

sca fringe benefits for government contractors
sca fringe benefits for government contractors

Bona-Fide Fringe Benefits

Government contractors are required to provide a bona-fide fringe benefit to each employee. The terms of this requirement are found in the employer’s contract with the government.
​Since most of these mandates are a derivative of the hours worked by the employee in conjunction with the posted fringe rate, record keeping services are vital for contract compliance.

Services Include
  • Monthly reconciliation of employer fringe reporting
  • Differentiation of “fixed” and “average” cost contracts
  • Individual employee accounting
  • Plan management and eligibility
  • Premium allocation and reconciliation
  • Premium reserve and hour bank accounting
  • Reporting trail for Department of Labor (DOL) audits

SCA Administration and What This Means!

We all know that your government contract has an hourly Health and Welfare Fringe Benefit requirement. Contractors need to understand contract anniversary dates, current and future fringe rates and how to implement them at the appropriate time(s).

On a monthly basis you will finalize employee hours and calculate the available fringe dollars used for benefits. These funds will be sent to your Plan administrator and deposited into a Health and Welfare Trust with oversite by a Trustee. BH Benefits understands all these requirements and processes. Let us help you to ensure your SCA administration process is compliant and transparent and that your administrator is always working in your best interest.

sca fringe benefits for government contractors
sca fringe benefits for government contractors

Compliance

Proving to the DOL and your contract employees that fringe dollars were calculated and allocated correctly will always be a requirement for contractors.

We offer a wide variety of record keeping and trust services for this process to ensure complete compliance with the DOL. Providing complete transparency will keep employees confident that their employer is working in their best interest.